- NAB plans to cut about 6% of its workforce in 2027
- Expects A$300 million pre-tax restructuring charge in 2027
- Follows warning that housing credit growth will slow sharply in 2027
SYDNEY, Oct 20 (Reuters) - National Australia Bank Ltd said on Tuesday it will shed up to 2,500 jobs, or about 6% of its workforce, in the next year to simplify its operations and cut costs while the nation's credit growth remains under pressure.
The bank, which is Australia's biggest business lender and third-largest home lender, said up to 1,500 roles would go by the end of 2026.
The biggest cuts will target corporate roles rather than customer-facing bankers, it said.
It also plans to materially reduce its use of consultants and contractors.
"Our ambition and strategy remain unchanged. We will improve productivity, risk outcomes and execution to be a simpler and more efficient bank," Chief Executive Andrew Irvine said in a statement.
NAB stock was down nearly 2.5% on Tuesday, and recorded the largest share price decline of Australia's "Big Four" retail banks in the session. The S&P/ASX 200 was down 0.9%.
NAB said it would begin consultation with the Finance Sector Union, whose national assistant secretary Nicole McPherson said the job cuts would not help simplify the organisation.
"To take a wrecking ball to 6% of one of Australia's largest workforces this close to Christmas is disgraceful and shows that NAB's leadership is completely detached from the lived experience of their workers," she said.
The overhaul will result in a restructuring charge of about A$300 million ($209 million) before tax in 2027, related to redundancy, redeployment and organisational redesign costs.
The charge compares with about A$80 million before tax incurred in each of 2025 and 2026, NAB said.
The job cuts follow a period of mounting pressure on Australia's banks as weaker housing activity, rising competition and higher operating costs weigh on earnings.
In August, NAB warned that housing credit growth would slow sharply in 2027 following the federal government's property tax reforms, which the bank said had dampened demand from homebuyers and investors.
At that time, Irvine said the combined effects of geopolitical uncertainty, higher domestic interest rates and tax changes were creating challenges for customers.
NAB employed 41,880 people globally as of September 30, 2025, according to its latest annual report.
The move follows a similar restructuring drive at rival ANZ, which last year announced plans to cut about 3,500 jobs by September 2026 as part of a simplification program under CEO Nuno Matos to reduce duplication and lower costs.
($1 = 1.4329 Australian dollars)
Reporting by Scott Murdohc and Rajasik Mukherjee in Bengaluru; Editing by Shreya Biswas and Lincoln Feast.
Source: Reuters